Michigan LLC Costs 2026: $50 to Form + $25/yr Annual Statement
Quick Answer
Forming an LLC in Michigan costs $50 for the Articles of Organization—one of the lowest formation fees in the country. The annual statement fee is $25, due by February 15 each year, with a $50 late penalty if it is received after that date. Michigan has no franchise tax for LLCs, and pass-through taxation means LLC members pay state income tax at the 4.25% rate.
Key Takeaways
- LLC formation filing fee: $50 (one of the lowest)
- Annual statement fee: $25, due February 15
- Late penalty: $50 if the statement is received after February 15
- No franchise tax for LLCs
- State income tax: 4.25% flat rate
- File through LARA (Michigan Licensing and Regulatory Affairs)
| Item | Cost/Details | Notes |
|---|---|---|
| Articles of Organization | $50 | One-time formation fee |
| Annual Statement | $25 | Due February 15 each year |
| Annual Statement Late Penalty | $50 | If received after February 15 |
| Restoration of Good Standing | $50 | Plus overdue annual statements |
| Registered Agent | $0-$200/year | Free if you self-serve |
| Foreign LLC Registration | $50 | For out-of-state LLCs (Form 760) |
| Certificate of Good Standing | $10 | Per document |
Formation Costs
Forming an LLC in Michigan requires filing Articles of Organization (Form CSCL/CD-700) with LARA (Michigan Licensing and Regulatory Affairs). Michigan has some of the lowest formation fees in the country. For every Michigan deadline and fee in one place, see the Michigan LLC state hub.
Required Fees
| Filing | Cost | Notes |
|---|---|---|
| Articles of Organization | $50 | Required, one-time |
| Registered Agent Designation | $0 | Included in Articles |
| Name Reservation (optional) | $25 | Holds name 6 months |
Affordable: At $50, Michigan has one of the lowest LLC formation fees in the United States. Compare this to Texas ($300), California ($70), or New York ($200).
Processing Times
- Standard processing: 3-5 business days
- Expedited (24-hour): Additional $50
- Same-day processing: Additional $100
- Online filing: Generally faster
Annual Fees and Statement
Every Michigan LLC must file an annual statement with LARA. This is your primary recurring compliance requirement.
Annual Statement Details
- Filing fee: $25
- Due date: February 15 each year
- Filing method: Online through LARA or by mail
- Late penalty: $50 if the statement is received after February 15
Early deadline + late penalty: February 15 is earlier than most states, and LARA adds a $50 penalty to the $25 fee if the statement arrives late. Set a reminder in January so you avoid the penalty. After two consecutive missed statements, the LLC loses good standing by operation of law and restoration costs $50 plus the overdue statements.
Michigan LLC Taxes
Pass-Through Taxation
Default: Pass-Through Tax Treatment
Michigan LLCs are treated as pass-through entities by default. Profits pass through to members, who report them on their personal Michigan tax returns.
Michigan State Income Tax
- Rate: 4.25% flat rate
- Applies to: All taxable income
- LLC members: Pay on their share of LLC profits
No Franchise Tax
Michigan does not impose a franchise tax on LLCs. Your only required state fee is the $25 annual statement.
Corporate Income Tax (If Applicable)
If your LLC elects C-corporation taxation:
- Rate: 6% Corporate Income Tax (CIT)
- Filing threshold: Taxpayers with under $350,000 in apportioned gross receipts (or $100 or less in liability) are not required to file or pay the CIT
- Filing: Michigan CIT Annual Return
Sales Tax
- State sales tax: 6%
- No local sales tax: Michigan doesn't allow local additions
- Must register with Michigan Department of Treasury
Other Business Costs
Registered Agent Costs
| Option | Annual Cost | Best For |
|---|---|---|
| Serve as your own agent | $0 | MI residents available during business hours |
| Basic agent service | $50-$99 | Privacy protection |
| Full-service agent | $100-$200 | Compliance alerts included |
Total Cost Breakdown
First Year Costs
| Expense | Minimum | Typical |
|---|---|---|
| Articles of Organization | $50 | $50 |
| Registered Agent | $0 | $100 |
| First Year Total | $50 | $150 |
Annual Ongoing Costs
| Expense | Minimum | Typical |
|---|---|---|
| Annual Statement | $25 | $25 |
| Registered Agent | $0 | $100 |
| Annual Total | $25 | $125 |
Cost-Saving Tips
1. File Online
Use LARA's online filing system. It's faster and provides immediate confirmation.
2. File Before February 15 to Avoid the $50 Penalty
Michigan's deadline is earlier than most states, and missing it adds a $50 late penalty to the $25 fee—tripling your annual cost. Set a reminder in early January.
3. Be Your Own Registered Agent (If Appropriate)
If you're a Michigan resident with consistent availability, serving as your own agent saves $50-$200/year. See whether you can be your own registered agent in Michigan and the full Michigan registered agent requirements before deciding.
For deadlines, restoration steps, and the rest of your ongoing obligations, see our Michigan LLC compliance guide and the Michigan LLC state hub.
Bottom Line: Michigan is one of the most affordable states for LLC ownership. At $50 to form and $25/year to maintain, you can have a legally formed LLC for less than $100 in the first year if you serve as your own registered agent—just file the annual statement on time, because a late filing adds a $50 penalty.
Frequently Asked Questions
What is the total cost to form an LLC in Michigan?
Does Michigan have a franchise tax for LLCs?
When is the Michigan LLC annual statement due?
What happens if I file my Michigan annual statement late?
Do Michigan LLCs pay state income tax?
Is Michigan a good state to form an LLC?
How much is the Michigan LLC annual statement fee?
Where do I file the Michigan LLC annual report?
Official Source
For the most up-to-date information, always verify requirements with the official Michigan Secretary of State website:
https://www.michigan.gov/laraImportant Disclaimer
This article is for informational purposes only and does not constitute legal advice. LLC requirements, fees, and deadlines change frequently. Always verify current requirements with your state's Secretary of State office before making business decisions.
Related Michigan LLC Articles
Michigan Registered Agent Requirements 2026
Complete guide to MI registered agent rules.
Can I Be My Own Registered Agent in Michigan?
Pros and cons of serving as your own agent.
Michigan Foreign LLC Registration
Registering an out-of-state LLC in Michigan.
Michigan LLC Compliance Guide
Staying compliant with Michigan LLC requirements.
Complete Michigan LLC Compliance Guide
View all Michigan LLC requirements, fees, and deadlines in one place.
View MI State GuideOr compare Michigan to every state on the annual report deadlines hub.